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Detroit-Warren-Livonia, MI

Detroit-Warren-Livonia, MIa
Q4 2010 - Market Summary



The near term demand for health care workers in the Detroit metropolitan area continued to slow during the fourth quarter of 2010 after a strong first half of the year. Of note, Beaumont Hospital eliminated about 60 managerial and administrator positions since the fall and also announced plans to cut an unspecified number of staff employees. Doctors’ Hospital of Michigan also alerted its 708 employees of possible layoffs or restructuring.

On a comparative basis Detroit’s health care labor market is now weaker than much of the rest of the country as measured by its Q4 LMPI score of 43.0, down 36% from the prior quarter and compared to the national composite of 49.8 for the quarter.

Q4 Workforce Announcements



With Vanguard deal done, what’s next for Detroit Medical Center? Ramp up construction. December 30, 2010
The Detroit Medical Center should become a larger and profit-making network of hospitals with possible growth through referrals from Vanguard Health Systems Inc.’s network, after Vanguard’s acquisition of the DMC goes into effect. The Vanguard acquisition brings for-profit health care to Michigan in a significant way and along with it the promise of new construction and improvements to the DMC campus in downtown Detroit.
http://www.crainsdetroit.com/article/20101230/FREE/101239995#

Beaumont lays off 60 supervisors; more cuts to come. December 28, 2010
Beaumont Hospitals has eliminated about 60 managerial and administrator positions since the fall - a number higher than originally announced - and is also cutting an unspecified number of staff employees.
http://www.detnews.com/article/20101228/BIZ/12280323/1001/Beaumont-lays-off-60-supervisors–more-cuts-to-come

Doctors’ Hospital warns staff of 708 of possible layoffs, restructuring. November 24, 2010
Doctors’ Hospital of Michigan, a struggling Pontiac facility that closed briefly in 2008, has alerted its 708 employees of possible layoffs or restructuring. But it insists it is not closing.
http://www.freep.com/article/20101124/BUSINESS06/11240434...

Previous market news

Hospitals and Health Systems

Source: US News & World Report

Education Program Expansion and Closures

No notable education program expansions and closures announced during Q4 2010.

Education Programs

Source: The Integrated Postsecondary Education Data System

Health of the Local Economy

Declining home prices may cause healthcare employees to seek additional hours from current employers, delay retirement plans and be more willing to relocate for a better job opportunities. Below is the Case-Shiller Home Price Index for the overall Detroit-Warren-Livonia, MI market.

Source: http://www2.standardandpoors.com accessed 1/5/2011

Lower home ownership rates reduce the impact of home price fluctuations and increase the willingness of healthcare employees to relocate for better job opportunities. Below are home ownership rates for the overall Detroit-Warren-Livonia, MI market.

Source: www.census.gov accessed 1/5/2011

The recent rising unemployment rates create new demands for health services. Higher unemployment shifts the mix away from higher margin procedures to more primary care in the emergency room and critical care for conditions that should have been treated early at a primary care physician. In general, rising unemployment also reduces turnover and engagement of employed workers, while low unemployment tends to increase intra market churn. Below are unemployment rates for the overall Detroit-Warren-Livonia, MI market.

Source: www.bls.gov accessed 1/5/2011

Additional Factors Influencing HWS Labor Market PulseTM Index

  • U.S. Census Bureau Population 4,425,110 #11 largest market
  • U.S. Census Bureau Population 167th oldest market
  • U.S. Census Bureau Population Growth -.6%, #318 fastest growing market


   

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